OHA Sustains Status Protest: Self-Proclaimed SDVOSB Awardee Not Certified by VetCert, Not Eligible For SBA’s Grace Period, And Not Veteran Owned or Controlled

In Mckenna Brytan Indus. LLC, SBA No. VSBC-334, 2023 (Feb. 8, 2024), the U.S. Small Business Administration (SBA) Office of Hearings and Appeals (OHA) sustained the Service-Disabled Small Business (SDVOSB) status protest of BTNG Enterprises, LLC (BTNG). In its decision, OHA reiterated the two current regulatory options for calling yourself an “SDVOSB” concern: the first, is having your SDVOSB application officially approved by the SBA and your company listed in the SBA’s Veteran Small Business Certification Program (VetCert) data base; and the second, is having submitted your complete application to SBA through VetCert prior to December 31, 2023, and be currently waiting for approval or denial. Here, OHA was unable to conclude that BTNG had done either of those things–despite looking for evidence of eligibility from the SBA and from BTNG itself.

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SmallGovCon Week in Review: July 3-7, 2023

Happy Friday! We hope you had a nice 4th of July and a great week. It was another scorcher here in Kansas, on the 4th, but thankfully our temperatures are much cooler to finish out the week. Here’s hoping you can find time to rest and relax this weekend and perhaps, read a few articles we thought were interesting from the federal government contracting world. Enjoy!

In this week’s edition, the federal fiscal fourth quarter is upon us!

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Govology Webinar: Eligibility Criteria and New Rules for SBA Veterans Certification Program, February 21, 1:00pm EST

The SBA took over certification of service-disabled veteran-owned small businesses and veteran-owned small businesses on January 1, 2023. Soon, all companies will require an SBA certification to qualify as an SDVOSB or VOSB.

In this course, Govology Faculty Instructor, Legal Analyst & retired founder of Koprince McCall Pottroff LLC, Steven Koprince offers a plain-English look at eligibility under the new SBA certification program. The webinar will cover the SBA’s often-misunderstood “unconditional” ownership requirements, the unique control requirements, and much more. Steven will also debunk some common SDVOSB/VOSB eligibility myths. Register here.

Franchise-Type Agreement Sinks SDVOSB Application

One of the key criteria for being a Service-Disabled Veteran-Owned Small Business (SDVOSB) is, as you might expect, that a service-disabled veteran control the company. Under Small Business Administration rules, an agreement similar to a franchise agreement can render an SDVOSB applicant ineligible, because the franchisor restrictions on the actions of the company are too strong. A recent case reminds us of the control imposed by these types of arrangements.

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Back to Basics: Veteran-Owned Businesses and SDVOSB Eligibility

To honor the sacrifice made by our country’s veterans, the federal government has made it a priority to set aside federal contracting opportunities for Service-Disabled Veteran-Owned Small Businesses (SDVOSB). To qualify for these opportunities, businesses must meet certain specifications in ownership and control. Let’s take a quick look at some the general qualifications needed to qualify as an SDVOSB and bid on SDVOSB set-aside contracts.

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Breaking: SBA Issues Veteran-Owned Certification Rules, Will Eliminate SDVOSB Self-Certification

The SBA has issued its draft rules on how it will go about certifying Veteran-Owned Small Businesses (VOSBs) and Service-Disabled, Veteran-Owned Small Businesses (SDVOSBs). Below, we highlight some of the main components of these rules. The changes stem from Congress’s requirement in the 2021 NDAA to to eliminate SDVOSB self-certification and adopt a government-wide SDVOSB certification requirement, while transferring control of the certification process from the VA to the SBA. For the most part, SBA has taken a simple approach, combining its existing rules on eligibility with much of the application procedures from VA. But the details do matter, and below we’ll walk through some of them.

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Control Matters: For SDVOSB Companies, Pay Attention to Appearances as Well as Realities

The case of Superior Optical Labs, Inc. (Superior) v. United States focuses on the control of a Service-Disabled Veteran Owned Small Business (SDVOSB) and how that control, or more precisely, lack of control, can disqualify an SDVOSB with 69% service-disabled veteran ownership from a solicitation set aside for SDVOSBs. This particular Solicitation was set aside entirely for an SDVOSB to provide prescription eyeglasses and related services through the Veterans Integrated Services Network (VISN). Superior was awarded the contract, which was then protested by PDS Consultants, Inc. (PDS) challenged the SDVOSB eligibility of Superior. In the end, OHA held that Superior did not qualify as a SDVOSB for purposes of the procurement due to a lack of control as required by SBA rules. PDS then challenged OHA’s decision at the Court of Federal Claims.

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